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Gazprom units to build Siberian gas refineries

Gazprom's units are developing plans to build two new petroleum gas refineries in Siberia to cut flaring of the fuel.

  • Bloomberg
  • Published: 00:28 April 18, 2008
  • Gulf News

London: Gazprom's units are developing plans to build two new petroleum gas refineries in Siberia to cut flaring of the fuel.

Sibur Holding and Gaz-prom Neft, the petrochemical and oil divisions of Gazprom, plan to invest about 27 billion roubles ($1.2 billion) to build the Vyngapurovksy gas refinery. They are also examining plans to build the Yuzhno-Priobsky refinery, Sibur President Dmitry Konov said yesterday.

"There is a joint venture to build Vyngapurovksy on the basis of our compressor station," Konov said in an interview in London yesterday

. The Yuzhno-Priobsky refinery will need a "similar" investment and "we are discussing whether it will be a joint venture or a long-term contract" for gas supplies to the plant.

Sibur, eastern Europe's largest petrochemical company, plans to spend about 130.5 billion roubles ($5.6 billion) building new refineries and expanding production between 2008 and 2012.

It will boost processing of associated gas, which is pumped together with crude oil, to 22 billion cubic metres in 2012, up from 14 billion last year, according to a company strategy report.

The Vyngapurovksy ref-inery will have annual capacity of three billion cubic metres of gas, Konov said.

Sibur is also examining joint projects with Nov-atek, Russia's second-largest natural-gas producer, and Rosneft, Russia's largest oil producer.

Moscow-based Sibur may sell as much as 120 billion roubles in bonds to fund its investment needs, Konov said.

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